BoE: Trends in Lending Figures – UK lenders starting to support business investment plans
According to Bank of England Trends in Lending figures released today net lending to UK businesses was positive in the three months to May, in contrast to a negative flow in the previous period. Iain Moffatt, UK Head of Regions at KPMG commented :
“Following positive news yesterday on unemployment levels falling, we now have further evidence today that the economy is getting stronger and it is good to see this increasing optimism among UK businesses and their investment plans being supported by UK lenders. This is consistent with our experience of significant improvements in liquidity in the credit markets and the results of our own survey of SME businesses across the UK. Whilst the general picture is of a loosening in the credit market, there is no room for complacency with only suitably framed proposals attracting interest from lenders.
“UK businesses still remain cautious with a gradual rather than explosive approach to their investment plans this year and having survived the recession, profitable growth is the number one priority.”